Would French VCs back the rise of Civic Tech ?
What if the next political candidate could launch their campaign from their living room couch? Or having a substantial impact on government policy was just a smartphone swipe away? According to Civic Tech experts, the entire world could change — or at least begin to do so. As VCs are keen on impact investment, we are keeping a close watch on the Civic Tech trend. So here are a few thoughts on the French market and what could sway the decision to invest in a Civic Tech.
According to TechCrunch, Civic Techs are start-ups or organizations that use technology to empower citizens to make governments more accessible, transparent and effective. They support the greater public good by improving the lives of the many rather than the few. This cultural movement has been gaining global momentum over the past decade and today is booming in France — just in time for the 2017 legislative and presidential elections.
Civic Techs run the gamut in terms of function — some seek to inform the uninformed, while others focus on grassroots mobilization, and others still take up causes — from the environment, to infrastructure, politics or social issues. No matter their rally cry, all Civic Techs share one thing in common: the desire to bring power back to the people and a voice to the masses.
Let’s take a look at a few French Civic Techs that are generating buzz:
Get informed
What do you know about your city? Bittle, an XAnge — backed tech startup, provides data management tools for collectivities to improve transparency and easier access to information for all the citizens .
Not sure where you stand on an issue? Voxe has got you covered. The site breaks down complex issues such as the refugee crisis, nuclear developments or education reform and presents quick and simplified explanations in the form of infographics and videos. Once readers are up to date on the issues, the site provides an interactive side-by-side comparison of election candidates based on key platforms and issues and the option to address questions directly to the candidates themselves. Battle-ready users can even seek out local meet-ups to engage in political debates.
For those who are more comfortable interacting from the comforts of home, Accropolis, or “the citizen channel”, and feature live commentary on news and political streaming. Drawing inspiration from the gaming world, the site invites its audience to actively engage by commenting and asking questions throughout the live feed. Spectators can contribute the discussion on topics such as unemployment, public debt, the burkini and terrorism.
Get moving
Every crowdfunding startup supporting local projects could be considered as a Civic Tech, so is Kisskissbankbank, an XAnge-backed French crowdfunding pioneer. Other Civic Techs such as Bloom, Avaaz and Change.org rely on the support of engaged and informed citizens to create, promote and sign petitions and bring about change in legislation and policy. The idea is that authorities can’t turn a deaf ear with so many voices in unison.
Earlier this year, following four years of intense debate, the EU banned deep-sea fishing due to the damage it causes to the seabed. This victory was largely credited to the mobilization of NGOs — and in particular, Bloom. The organization launched a petition against trawling in 2013 and received record-breaking support from French citizens with nearly 900,000 signatures.
Get involved
L’Arrondi by MicroDON (backed by EsfinGestion ; la SIFA and FundRaisingLab) is a fantastic tool to commit citizen to give small donations but more frequently, in their workplace, thanks to its “embedded generosity” tools, and in order to support local and meaningful charities. Fluicity creates local networks of citizens and encourages them to become partners in the building and management of their city. The website provides real-time local information, a platform for citizens to pitch project ideas and interact directly with their elected officials and a city-wide survey that allows residents to share their opinions.
Similarly, the mobile and desktop functions of TellMyCity, a Paris-based start-up, relies on citizens to point out problems, suggest solutions and follow up on requests made within their city. Take for example a fallen street sign or an issue with city sanitation — instead of waiting on hold or standing in line at city hall, citizens can take action via the mobile app or website.
And if that’s not enough to feel truly involved, organizations such as #MaVoix (my voice, in English) and laprimaire.org are aiming to elect government officials from the general pool of everyday citizens. More precisely, the mission of #MaVoix is to “hack” the National Assembly by electing trained, volunteer citizens who will be held accountable throughout the entirety of their 5-year term. The movement began based on the rising public opinion that once elected, public officials are no longer obligated to listen to their constituents — rendering citizens’ mere spectators in the future of their cities and countries. If elected, #MaVoix candidates will vote strictly based on the results of the organization’s digital-voting platform.
As French VCs, how could we back more Civic Techs ?
The DNA of a VC is to invest in startups which can become, in a few years, big companies with rock-solid and scalable business models. For XAnge Impact, our Impact VC range of funds, it’s about investing in scalable startups with a huge positive impact on society.
But for now, the problem facing a VC who wants to back Civic Techs is that their business models rely too often on local authorities budgets and/or the seek of public subsidies, which is not always a clue of a booming future. Which kind of other business models could be found? Selling data could be a very bad idea to keep the DNA of a Civic Tech, for example. Opening its capital to a politically oriented Business Angel might be risky too… Would open source models be the only way to handle this duality?
How a Civic Tech could be profitable and highly scalable, while keeping its constituent neutrality?
However, Civic Techs appear to be a promising market. In that kind of sense, in Forbes, Mike Montgomery explains that « Local and state government will spent an estimated $25.5 billion on information technology this year. Civic Tech makes up just 24% of that, according to IDC. But spending on Civic Tech is growing 14 times faster than spending on traditional technology. » Direct consequence : In the USA, OpenGov has raised a total $27 million and Accela, $200 million.
So, YES, VCs should back the huge rise of the Civic Tech. And we are eager to connect with your promising Civic Tech ideas at XAnge and XAnge Impact !
